ETF Versus

XLC vs XLU

State Street Communication Services Select Sector SPDR ETF vs State Street Utilities Select Sector SPDR ETF

Last updated: 2026-04-10

XLC SPDR

State Street Communication Services Select Sector SPDR ETF (XLC) is an exchange-traded fund issued by SPDR that provides exposure to us sector - communication securities. It charges a low expense ratio of 0.08%. The fund offers a moderate dividend yield of 1.23%. Launched in 2018, the fund has a 8-year track record.

AUM: $24.6B ER: 0.08% Yield: 1.23% Since: Jun 18, 2018
XLU SPDR

State Street Utilities Select Sector SPDR ETF (XLU) is an exchange-traded fund issued by SPDR that provides exposure to us sector - utilities securities. It charges a low expense ratio of 0.08%. The fund offers an attractive dividend yield of 2.51%. Launched in 1998, the fund has a 28-year track record.

AUM: $25.1B ER: 0.08% Yield: 2.51% Since: Dec 16, 1998

Quick Verdict

Both funds have delivered similar 1-year returns (25.9% vs 25.8%), tracking closely. Income investors may prefer XLU for its higher yield (2.5% vs 1.2%).

Key Metrics

Metric XLC XLU
Expense Ratio 0.08% 0.08%
Dividend Yield 1.2% 2.5%
Fund Family SPDR SPDR
Category US Sector - Communication US Sector - Utilities

Performance Chart

Indexed to 100 at start (5-year comparison)

55 76 97 118 139 160 2021-04 2022-07 2023-10 2025-01 2026-04
XLC +48.7%
XLU +46.2%

Performance Comparison

Period XLC XLU Difference
1 Month -2.66% +2.70% -5.36%
3 Months -3.11% +11.36% -14.47%
6 Months +0.04% +4.33% -4.29%
YTD -2.57% +9.81% -12.38%
1 Year +25.85% +25.77% +0.08%
3 Years +94.19% +36.00% +58.19%
5 Years +48.66% +46.16% +2.50%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period XLC Fees XLU Fees You Save
$10,000 10 years $159 $159 $0
$10,000 20 years $686 $686 $0
$10,000 30 years $2,212 $2,212 $0
$50,000 10 years $797 $797 $0
$50,000 30 years $11,061 $11,061 $0
$100,000 30 years $22,123 $22,123 $0

Risk Metrics

Based on 5 years of daily returns

Metric XLC XLU
Annualized Volatility 20.7% 17.2%
Max Drawdown -47.2% -28.1%
Sharpe Ratio 0.27 0.27

Dividend Comparison

Metric XLC XLU
Annual Dividend (per share) $1.40 $1.19
Dividend Yield 1.23% 2.51%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

XLC Top Holdings

NameWeight
Meta Platforms, Inc.META13.83%
Alphabet Inc.GOOG6.65%
Live Nation Entertainment, Inc.LYV4.71%
Netflix, Inc.NFLX4.57%
The Walt Disney CompanyDIS4.50%
Take-Two Interactive Software, Inc.TTWO4.48%
EchoStar CorporationSATS4.47%
Omnicom Group Inc.OMC4.37%
Warner Bros. Discovery, Inc.WBD4.35%

XLU Top Holdings

NameWeight
NextEra Energy, Inc.NEE13.52%
The Southern CompanySO7.38%
Duke Energy CorporationDUK7.06%
Constellation Energy CorporationCEG6.11%
American Electric Power Company, Inc.AEP5.02%
SempraSRE4.45%
Dominion Energy, Inc.D3.72%
Entergy CorporationETR3.57%
Exelon CorporationEXC3.47%
Vistra Corp.VST3.42%

Which One Should You Choose?

Choose XLU if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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